Churchill Downs abandons $1B renovation due to tariff-fueled uncertainty

A large-scale renovation project at Churchill Downs intended to be unveiled by the 2028 Kentucky Derby has been gated in the paddock due to implemented tariffs and related economic uncertainty.

When and if the nearly $1 billion planned renovations announced only two months ago could resume is dependent upon clarity from federal officials and stabilization of costs, according to Churchill Downs Inc.

The pause was due to "increasing uncertainty surrounding construction costs related to tariff and trade disputes as well as current macro-economic conditions," but will not impact the 2025 Kentucky Derby on May 3, track officials said.

"The decision to pause the Skye Terrace and infield projects was a difficult one for us to make because we do not want to disappoint our fans; however, we have a responsibility to be disciplined given the recent changes in the economic environment," Churchill Downs Inc. CEO Bill Carstanjen said in a statement. "We remain committed to growing our iconic flagship asset over the long term with projects that will provide new once-in-a lifetime experiences for our guests and deliver best-in-class shareholder returns."

Churchill Downs plans to continue renovation to the Finish Line suites and Trophy Room at a fraction of the projected cost of the planned overhaul, which was estimated to carry a cost of more than $930 million. That facelift was to include permanent infield seating and radical changes to the multi-level Skye Terrace.

The secondary project moving forward could be completed before the 2026 Kentucky Derby.

--Field Level Media